You are only allowed 7m because the plot is 10 m wide and a distance of 3 m must be kept from the neighbor. The other half could theoretically be built by the neighbor. However, he currently has no ambitions.
Exactly, in front of the house there will only be a terrace. The terrain is level and a garage could theoretically still be built next to the house (at the other property boundary). But we are refraining from that for now because we will not use the driveway by car, so that more space remains for the front house.